W4.0 – AhmedALAbri- Bid Evaluation compensatory models

1. Problem Definition

Four bidders submitted their technical and commercial bids to win the contract of design and construction of drill site, access road to drilling site and camp works from an oil and gas company.

The role of the infrastructure manager of oil and Gas Company and his team to evaluate the technical bids of the four bidders prior the commercial bids are opening.  

2. Identify the Feasible Alternative

Infrastructure manager and his team decided to use compensatory models to evaluate and rank the bidders and this model is composed of:-

  • Non-dimensional Scaling; the alternative will be selected  if have a highest  of dimensionless value total.
  • The Additive Weighting Technique; the alternative  will be selected if have a highest of total score for each alternative

3. Development of the Outcome for Alternative

The Evaluation criteria are listed below:-

  • General information
  • Project Execution plan
  • Project organization
  • Quality assurance and Quality control
  • Health, safety and Security plan
  • Tenderer’s resources
  • Technical Expectation
  • Current commitment and workload
  • Experience and Track record

4. Selection Criteria

 The criteria of the feasible alternatives using compensatory models as follow:


5. Analysis and Comparison of the Alternative

Analysis and comparison of the alternatives as below tables:-




 6. Selection of the Preferred Alternative

By using Non Dimensional Scale and Additive Weighting Technique contractor (1) recoded the best score in the technical evaluation.

 7. Performance Monitoring and the Post Evaluation of Result

Multi-attributes of compensatory models are one of the best techniques for selecting the best option.

8. Reference:

  1. UK North Sea oil production decline. Retrieved from (http://www.oilvoice.com/n/UK_North_Sea_oil_production_decline/5e0b0a2ab66b.aspx#gsc.tab=0)
  2. Giammalvo, P. D. (2012). AACE Certification Preparation Course Handouts.
  3. Sullivan Wicks Koelling, Engineering Economy (fifteenth Edition). Prentice Hall
  4. Taylor, A. (n.d.). DECISION MAKING. Retrieved June 16, 2014, from http://home.sandiego.edu/~taylor/decisionmaking.html
  5. Richarme, M. (n.d.). Consumer Decision Making Models Article by Michael Richarme. Retrieved June 16, 2014, from http://www.decisionanalyst.com/publ_art/decisionmaking.dai
  6. TRIANUGROHO, A. (2014, March 27). W5_Andi_Decision Making Compensatory Models | Kristal AACE 2014. Retrieved June 16, 2014, from http://kristalaace2014.wordpress.com/2014/03/27/w5_andi_decision-making-compensatory-models/

3 thoughts on “W4.0 – AhmedALAbri- Bid Evaluation compensatory models

  1. AWESOME case study Ahmed and you did a really nice job with your calculations and your analysis.

    Only your step 7 was a little bit weak…….. How can you or should you be using actual contractor performance to test or validate that your scoring model is appropriately weighted?

    If you wish, this would make a great W5 blog posting. How can or should you test and validate a contractor scoring model to ensure that it is properly or appropriately selecting the “best” contractor?

    Looking forward to seeing more postings in the future like this!!

    Dr. PDG, wrapping up here at the AACE Symposium in New Orleans

  2. Pingback: W5.0 – AhmedALAbri- Test and validate a contractor scoring model. | PMI-Oman 2014

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s